Digitising Contractor Time Capture to Reduce Labour Cost Leakage

At a large NSW open cut mine, contractor labour costs were quietly escalating due to inaccurate timesheet claims. Small discrepancies, often just minutes per shift, were compounding into millions of dollars in annual losses.

By digitising contractor sign-on, timesheet submission, and supervisor approval, the operation shifted control back to the frontline. The result was sharper visibility, faster decision-making, and an estimated AUD $6 million in annual savings without impacting safety or productivity.

Cost Pressure at Scale

Operating in a highly competitive environment, the mine needed tighter control over rising labour costs.

While no single issue stood out, contractor workforce inefficiencies, multiplied across scale, were creating significant financial drag.

When Small Gaps Become Big Losses

Timesheet discrepancies were common:

  • Contractors claiming more time than job duration or site presence supported
  • Legitimate variations (e.g. site entry delays, tooling collection) mixed with unsupported claims
  • Supervisors lacking time and access to verify claims properly
  • Approvals often happening during shift handovers when pressure is highest

The impact: An average overclaim of just 20 minutes per shift equated to ~AUD $9 million annually in one department alone.

Back-office reconciliation was:

  • Reactive
  • Time-consuming
  • Often leading to disputes after invoices were already submitted

What Needed to Change

The operation set out to:

  • Reduce contractor labour cost leakage
  • Enable fast, confident frontline approvals
  • Cut administrative overhead
  • Eliminate invoice disputes through reliable data
  • Maintain safety and productivity
  • The Shift: Moving Control to the Frontline

Rather than tightening controls after the fact, the solution focused on real-time visibility and decision-making where the work happens.

Key components of the solution included:

  • Frontline Sign-On/Sign-Off
    Contractors log on and off at kiosks at the start and end of each job or shift
  • Digital Timesheet Submission
    Timesheets are completed and submitted immediately via kiosk
  • Automated Supervisor Workflow
    Timesheets flow directly to supervisors for approval via desktop, tablet, or mobile
  • Real-Time Discrepancy Detection
    The system flags differences between claimed time, site entry/exit records and job allocation time
  • Immediate Resolution at Source
    Supervisors address discrepancies on the spot while context is still clear
  • Supplier Transparency
    Contractors access approved time records directly for invoicing
  • Accurate Invoice Verification
    All invoices are backed by approved, traceable data

The Results: Control, Clarity, and Real Savings

The impact was immediate and measurable:

  • ~AUD $6 million annual savings in contractor labour
  • Frontline control replaced delayed back-office corrections
  • Major reduction in admin workload across all stakeholders
  • Faster, cleaner invoice verification
  • Fewer disputes with contractors
  • Supervisors freed up to focus on safety, coordination, and productivity

Why It Worked

This was about better timing and better information.

  • Decisions moved closer to the work
  • Supervisors had the right data at the right moment
  • Discrepancies were handled before they became disputes

Key Takeaways

  • Small time overclaims scale into major financial losses
  • Manual approval processes fail without accessible verification data
  • Frontline control is far more effective than retrospective fixes
  • Digitisation improves both cost control and efficiency
  • Transparent, traceable data strengthens supplier relationships

This case highlights a common issue across contractor-heavy industries: cost leakage actually comes from small, repeated gaps.

By digitising contractor time capture and approval, this operation turned a fragmented, reactive process into a controlled, efficient, and transparent system.

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